Earnings increased 29% year-over-year: First quarter 2014 GAAP
Net Income Attributable to the Company increased to $17.0 million, or
$0.20 per share, versus net income of $13.2 million, or $0.15 per
share, for the first quarter of 2013.

Total Operating Expenses decreased: Total Operating Expenses
decreased 1% to $55.0 million on a linked quarter basis and decreased
3% on a year-over-year basis. Expenses remained elevated in the first
quarter due to seasonality in compensation and benefits.

Provision credit: The Company recorded a provision credit of
$1.2 million in the quarter due to net recoveries of $1.4 million.

April 15, 2014 04:05 PM Eastern Daylight Time

BOSTON--(BUSINESS WIRE)--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the "Company" or
"BPFH") today reported first quarter 2014 GAAP Net Income Attributable
to the Company of $17.0 million, compared to $17.7 million in the fourth
quarter of 2013. GAAP Net Income Attributable to the Company increased
29% on a year-over-year basis from $13.2 million in the first quarter of
2013. BPFH reported first quarter diluted earnings per share of $0.20,
flat with the fourth quarter of 2013. Diluted earnings per share
increased by 33% on a year-over-year basis from $0.15 in the first
quarter of 2013.

On a year-over-year basis, Core Fees and Income (Investment Management
Fees, Private Banking Wealth Management and Trust Fees, Wealth Advisory
Fees, Other Banking Fee Income and Gain on Sale of Loans) increased 6%
to $31.7 million due to double-digit growth in Wealth Advisory Fees and
Investment Management Fees. On a linked quarter basis, Core fees
decreased 4% from $32.8 million in the fourth quarter of 2013. The
decrease was driven by a decline in Investment Management Fees and a
decline in Other Banking Fee Income. Fourth quarter 2013 Investment
Management Fees included $1.2 million in seasonal performance fees.

Total Assets Under Management/Advisory ("AUM") increased to $24.7
billion in the first quarter, up 2% from $24.3 billion in the fourth
quarter of 2013. AUM increased 13% from $21.9 billion in the first
quarter of 2013. The Company experienced first quarter 2014 AUM net
inflows of $103 million, as compared to fourth quarter 2013 AUM net
inflows of $147 million. AUM net inflows for the first quarter of 2013
were $181 million.

Net Interest Income Increased 2% Linked Quarter

Net Interest Income in the first quarter was $44.5 million, up 2% from
$43.5 million in the fourth quarter of 2013. On a year-over-year basis,
Net Interest Income increased 1% from $44.3 million.

Net Interest Margin was 3.04% in the first quarter, up six basis points
from 2.98% in the fourth quarter. Net Interest Margin decreased six
basis points from 3.10% in the first quarter of 2013.

"Our NIM expanded in the first quarter as a result of specific actions
taken in the fourth quarter," said David J. Kaye, Chief Financial
Officer. "Late in the fourth quarter we deployed excess cash into
investment securities and restructured some FHLB borrowings which
lowered our borrowing costs."

Total Operating Expenses for the first quarter of 2014 were $55.0
million, down 1% from $55.5 million in the fourth quarter of 2013. First
quarter expenses were elevated by seasonal compensation expenses such as
increased 401(k) employee contribution matches and FICA. On a
year-over-year basis, Total Operating Expenses decreased 3% from $56.6
million due primarily to savings in compensation and benefits.

Provision Credit of $1.2M Driven By Net Recoveries

The Company recorded a $1.2 million credit to its Provision for Loan
Losses in the first quarter of 2014, compared to a provision credit of
$2.0 million in the fourth quarter. The provision credit was driven by
net recoveries of $1.4 million. The Company recorded no provision in the
first quarter of 2013.

Criticized Loans increased 8% to $187.3 million on a linked quarter
basis, and decreased 16% year-over-year. The increase was driven
primarily by the downgrade of one pass rated loan to Special Mention in
Southern California. Nonaccrual Loans ("Nonaccruals") decreased 6% to
$42.1 million, down from $44.8 million on a linked quarter basis. On a
year-over-year basis, Nonaccruals decreased 42% from $73.0 million. As a
percentage of Total Loans, Nonaccruals were 81 basis points at March 31,
2014, down 6 basis points from 87 basis points at December 31, 2013, and
down 72 basis points from 1.53% at March 31, 2013.

Additional credit metrics are listed below on a linked quarter and
year-over-year basis:

(In millions)

March 31, 2014

December 31, 2013

March 31, 2013

Total Criticized Loans

$

187.3

$

173.6

$

223.5

Total Loans 30-89 Days Past Due and Accruing (13)

$

10.6

$

13.7

$

17.3

Total Net Loans (Charged-off)/ Recovered

$

1.4

$

1.2

$

(1.8

)

Allowance for Loan Losses/ Total Loans

1.48

%

1.49

%

1.72

%

Capital Ratios Held Steady

The Company maintained its strong capital position in the first quarter
of 2014.

Capital ratios are listed below on a linked quarter and year-over-year
basis:

March 31, 2014

December 31, 2013

March 31, 2013

Total Risk-Based Capital *

14.9

%

14.8

%

14.9

%

Tier I Risk-Based Capital *

13.7

%

13.5

%

13.6

%

Tier I Leverage Capital *

10.2

%

10.1

%

10.1

%

TCE/TA

7.1

%

7.2

%

8.0

%

Tier I Common Equity/ Risk Weighted Assets *

10.1

%

9.9

%

9.2

%

*March 31, 2014 data is presented based on estimated data.

Dividend Payments

Concurrent with the release of first quarter 2014 earnings, the Board of
Directors of the Company declared a cash dividend to common shareholders
of $0.08 per share. The record date for this dividend is May 9, 2014,
and the payment date is May 23, 2014.

The Board of Directors of the Company also declared a cash dividend to
holders of the Non-Cumulative Perpetual Preferred Stock, Series D of
$17.375 per share, which will result in a dividend of $0.434375 per
depositary share. The record date for this dividend is May 15, 2014, and
the payment date is June 16, 2014.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures, such as tangible
book value per share; the TCE/TA ratio; return on average common equity;
return on average tangible common equity; pre-tax, pre-provision
earnings; and the efficiency ratio (FTE basis), to provide information
for investors to effectively analyze financial trends of ongoing
business activities, and to enhance comparability with peers across the
financial sector. A detailed reconciliation table of the Company's GAAP
to the non-GAAP measures is attached.

Conference Call

Management will hold a conference call at 8 a.m. Eastern Time on
Wednesday, April 16, to discuss the financial results, business
highlights and outlook. To access the call:

Boston Private Financial Holdings, Inc. is a national financial services
organization that owns Wealth Management and Private Banking affiliates
in Boston, New York, Los Angeles and the San Francisco Bay Area. The
Company has a $6 billion Private Banking balance sheet, and manages over
$24 billion of client assets.

The Company positions its affiliates to serve the high net worth
marketplace with high quality products and services of unique appeal to
private clients. The Company also provides strategic oversight and
access to resources, both financial and intellectual, to support
affiliate management, marketing, compliance and legal activities.
(NASDAQ: BPFH)

Certain statements in this press release that are not historical facts
may constitute forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, and are intended to
be covered by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve risks
and uncertainties. These statements include, among others, statements
regarding our strategy, evaluations of future interest rate trends and
liquidity, prospects for growth in assets, and prospects for overall
results over the long term. You should not place undue reliance on our
forward-looking statements. You should exercise caution in interpreting
and relying on forward-looking statements because they are subject to
significant risks, uncertainties and other factors which are, in some
cases, beyond the Company's control. Forward-looking statements are
based on the current assumptions and beliefs of management and are only
expectations of future results. The Company's actual results could
differ materially from those projected in the forward-looking statements
as a result of, among other factors, adverse conditions in the capital
and debt markets and the impact of such conditions on the Company's
private banking, investment management and wealth advisory activities;
changes in interest rates; competitive pressures from other financial
institutions; the effects of continued weakness in general economic
conditions on a national basis or in the local markets in which the
Company operates; changes in loan defaults and charge-off rates; changes
in the value of securities and other assets, adequacy of loan loss
reserves, or decreases in deposit levels necessitating increased
borrowing to fund loans and investments; increasing government
regulation; the risk that goodwill and intangibles recorded in the
Company's financial statements will become impaired; the risk that the
Company's deferred tax asset may not be realized; risks related to the
identification and implementation of acquisitions, dispositions and
restructurings; changes in assumptions used in making such
forward-looking statements; and the other risks and uncertainties
detailed in the Company's Annual Report on Form 10-K and updated by the
Company's Quarterly Reports on Form 10-Q and other filings submitted to
the Securities and Exchange Commission. Forward-looking statements speak
only as of the date on which they are made. The Company does not
undertake any obligation to update any forward-looking statement to
reflect circumstances or events that occur after the date the
forward-looking statements are made.

Note to Editors:

Boston Private Financial Holdings, Inc. is not to be confused with
Boston Private Bank & Trust Company. Boston Private Bank & Trust Company
is a wholly-owned subsidiary of BPFH. The information reported in this
press release is related to the performance and results of BPFH.

TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS,
AND SHAREHOLDERS' EQUITY

$

6,450,055

$

6,378,452

$

6,316,940

Net Interest Income - on a Fully Taxable Equivalent Basis (FTE)

$

46,690

$

45,707

$

46,283

LESS: FTE Adjustment (8)

2,168

2,166

2,007

Net Interest Income (GAAP Basis)

$

44,522

$

43,541

$

44,276

Interest Rate Spread

2.86

%

2.79

%

2.89

%

Net Interest Margin

3.04

%

2.98

%

3.10

%

Boston Private Financial Holdings, Inc.

Selected Financial Data

(Unaudited)

(In Thousands)

LOAN DATA (11):

3/31/2014

12/31/2013

3/31/2013

Commercial and Industrial Loans:

New England

$

704,056

$

713,484

$

672,895

San Francisco Bay

108,365

107,154

61,806

Southern California

39,780

45,415

53,811

Total Commercial and Industrial Loans

$

852,201

$

866,053

$

788,512

Commercial Real Estate Loans:

New England

$

730,709

$

721,924

$

643,756

San Francisco Bay

644,108

641,746

642,170

Southern California

483,817

449,724

402,515

Total Commercial Real Estate Loans

$

1,858,634

$

1,813,394

$

1,688,441

Construction and Land Loans:

New England

$

94,966

$

92,456

$

99,989

San Francisco Bay

62,879

45,941

37,923

Southern California

16,871

15,520

11,005

Total Construction and Land Loans

$

174,716

$

153,917

$

148,917

Residential Loans:

New England

$

1,227,114

$

1,228,623

$

1,163,647

San Francisco Bay

456,372

459,667

436,577

Southern California

352,369

344,004

298,189

Total Residential Loans

$

2,035,855

$

2,032,294

$

1,898,413

Home Equity Loans:

New England

$

77,470

$

81,010

$

78,154

San Francisco Bay

28,159

30,002

34,745

Southern California

3,334

2,648

5,283

Total Home Equity Loans

$

108,963

$

113,660

$

118,182

Other Consumer Loans:

New England

$

119,500

$

117,079

$

126,409

San Francisco Bay

7,311

8,854

7,792

Southern California

5,246

7,069

6,606

Eliminations and other, net

44

139

195

Total Other Consumer Loans

$

132,101

$

133,141

$

141,002

Total Loans

New England

$

2,953,815

$

2,954,576

$

2,784,850

San Francisco Bay

1,307,194

1,293,364

1,221,013

Southern California

901,417

864,380

777,409

Eliminations and other, net

44

139

195

Total Loans

$

5,162,470

$

5,112,459

$

4,783,467

Boston Private Financial Holdings, Inc.

Selected Financial Data

(Unaudited)

(In Thousands)

CREDIT QUALITY (11):

3/31/2014

12/31/2013

3/31/2013

Special Mention Loans:

New England

$

41,920

$

41,759

$

31,132

San Francisco Bay

25,055

25,912

24,130

Southern California

36,452

19,642

19,917

Total Special Mention Loans

$

103,427

$

87,313

$

75,179

Accruing Substandard Loans (12):

New England

$

12,319

$

13,304

$

17,372

San Francisco Bay

26,294

25,171

49,306

Southern California

3,507

3,540

8,680

Total Accruing Substandard Loans

$

42,120

$

42,015

$

75,358

Nonaccruing Loans:

New England

$

21,569

$

24,838

$

39,853

San Francisco Bay

12,541

14,016

25,626

Southern California

7,944

5,908

7,547

Total Nonaccruing Loans

$

42,054

$

44,762

$

73,026

Other Real Estate Owned:

New England

$

336

$

191

$

1,744

San Francisco Bay

585

585

585

Southern California

—

—

—

Pacific Northwest (1)

N/A

N/A

477

Total Other Real Estate Owned

$

921

$

776

$

2,806

Loans 30-89 Days Past Due and Accruing (13):

New England

$

4,472

$

5,029

$

10,609

San Francisco Bay

2,577

3,029

5,862

Southern California

3,528

5,684

833

Total Loans 30-89 Days Past Due and Accruing

$

10,577

$

13,742

$

17,304

Loans (Charged-off)/ Recovered, Net for the Three Months Ended:

New England

$

540

$

(344

)

$

(1,236

)

San Francisco Bay

640

1,798

(1,508

)

Southern California

254

(260

)

973

Total Net Loans (Charged-off)/ Recovered

$

1,434

$

1,194

$

(1,771

)

Boston Private Financial Holdings, Inc.

Selected Financial Data

(Unaudited)

FOOTNOTES:

(1)

On December 17, 2012, Boston Private Bank & Trust Company announced
that it had entered into an agreement to sell its three offices in
the Pacific Northwest region. The sale closed on May 10, 2013, at
which time the Company recorded a gain on sale of $10.6 million.
Accordingly, the assets and liabilities to be sold as part of this
transaction were classified as held for sale at March 31, 2013.
Within loans held for sale on the consolidated balance sheet at
March 31, 2013, $273.6 million relate to the Pacific Northwest
transaction. All of the deposits held for sale at March 31, 2013
relate to the Pacific Northwest transaction. All other assets and
liabilities that were identified be included in the Pacific
Northwest transaction were classified as other assets held for sale
or other liabilities held for sale and were included within other
assets or other liabilities on the consolidated balance sheet at
March 31, 2013.

Adjustments to net income attributable to the Company to arrive at
net income attributable to the common shareholders, as presented in
these tables, include decrease/ (increase) in noncontrolling
interests redemption value, dividends paid on preferred stock, and
dividends on participating securities.

(4)

When the Company has positive net income from continuing operations
attributable to the common shareholders, the Company adds additional
shares to basic weighted average shares outstanding to arrive at
diluted weighted average shares outstanding for the diluted earnings
per share calculation. These additional shares reflect the assumed
exercise, conversion, or contingent issuance of dilutive securities.
If the additional shares would result in anti-dilution they would be
excluded from the diluted earning per share calculation. The
potential dilutive shares relate to: unexercised stock options,
unvested non-participating restricted stock, and unexercised stock
warrants. See Part II. Item 8. "Financial Statements and
Supplementary Data - Note 16: Earnings Per Share" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2013 for
additional information.

(5)

The Company uses certain non-GAAP financial measures, such as:
Tangible Book Value Per Share and the Tangible Common Equity ("TCE")
to Tangible Assets ("TA") ratio to provide information for investors
to effectively analyze financial trends of ongoing business
activities, and to enhance comparability with peers across the
financial sector.

Reconciliations from the Company's GAAP Total Equity to Total Assets
ratio to the Non-GAAP TCE to TA ratio, and from GAAP Book Value to
Non-GAAP Tangible Book Value are presented below:

The Company calculates Tangible Assets by adjusting Total Assets to
exclude Goodwill and Intangible Assets.

The Company calculates Tangible Common Equity by adjusting Total
Equity to exclude non-convertible Series D Preferred stock and
exclude Goodwill and Intangible Assets, net.

(In thousands, except per share data)

Mar 31, 2014

Dec 31, 2013

Mar 31, 2013

Total Balance Sheet Assets

$

6,705,420

$

6,437,109

$

6,196,421

LESS: Goodwill and Intangible Assets, net

(129,731

)

(130,784

)

(133,993

)

Tangible Assets (non-GAAP)

$

6,575,689

$

6,306,325

$

6,062,428

Total Shareholders' Equity

$

645,979

$

633,688

$

617,078

LESS: Series D Preferred Stock (non-convertible)

(47,753

)

(47,753

)

—

LESS: Goodwill and Intangible Assets, net

(129,731

)

(130,784

)

(133,993

)

Total adjusting items

(177,484

)

(178,537

)

(133,993

)

Tangible Common Equity (non-GAAP)

$

468,495

$

455,151

$

483,085

Total Equity/Total Assets

9.63

%

9.84

%

9.96

%

Tangible Common Equity/Tangible Assets (non-GAAP)

7.12

%

7.22

%

7.97

%

Total Risk Weighted Assets *

$

4,716,065

$

4,668,531

$

4,592,071

Tier I Common Equity *

$

475,929

$

463,627

$

424,732

Tier I Common Equity/ Risk Weighted Assets

10.09

%

9.93

%

9.25

%

End of Period Shares Outstanding

80,001

79,838

79,054

End of Period Carlyle Common Convertible Shares

—

—

7,261

Common Equivalent Shares

80,001

79,838

86,315

Book Value Per Common Share

$

7.48

$

7.34

$

7.07

Tangible Book Value Per Share (non-GAAP)

$

5.86

$

5.70

$

5.60

* Risk Weighted Assets and Tier I Common Equity for March 31, 2014
are presented based on estimated data.

(6)

The Company uses certain non-GAAP financial measures, such as:
Return on Average Common Equity and Return on Average Tangible
Common Equity to provide information for investors to effectively
analyze financial trends of ongoing business activities, and to
enhance comparability with peers across the financial sector.

Reconciliations from the Company's GAAP Return on Average Equity
ratio to the Non-GAAP Return on Average Common Equity ratio, and the
Non-GAAP Return on Average Tangible Common Equity ratio are
presented below:

The Company calculates Average Common Equity by adjusting Average
Equity to exclude Average Preferred Equity.

The Company calculates Average Tangible Common Equity by adjusting
Average Equity to exclude Average Goodwill and Intangible Assets,
net and Average Preferred Equity.

(In thousands, except per share data)

Mar 31, 2014

Dec 31, 2013

Mar 31, 2013

Total average shareholders' equity

$

640,549

$

629,268

$

609,859

LESS: Average Series D preferred stock (non-convertible)

(47,753

)

(47,753

)

—

Average common equity (non-GAAP)

592,796

581,515

609,859

LESS: Average goodwill and intangible assets, net

(130,272

)

(131,375

)

(134,511

)

Total adjusting items

(130,272

)

(131,375

)

(134,511

)

Average Tangible Common Equity (non-GAAP)

$

462,524

$

450,140

$

475,348

Net income attributable to the Company

$

17,041

$

17,668

$

13,203

Less: Dividends on Series D preferred stock

(869

)

(869

)

—

Net income, after dividends on Series D preferred stock (non-GAAP)

$

16,172

$

16,799

$

13,203

Return on Average Equity - Three Months Ended (Annualized)

10.64

%

11.23

%

8.66

%

Return on Average Common Equity - Three Months Ended (Annualized)
(non-GAAP)

10.91

%

11.56

%

8.66

%

Return on Average Tangible Common Equity - Three Months Ended
(Annualized) (non-GAAP)

13.99

%

14.93

%

11.11

%

(7)

The Company uses certain non-GAAP financial measures, such as:
pre-tax, pre-provision earnings and the efficiency ratio to
provide information for investors to effectively analyze financial
trends of ongoing business activities, and to enhance
comparability with peers across the financial sector.

Reconciliations from the Company's GAAP income from continuing
operations before income taxes to non-GAAP pre-tax, pre-provision
earnings; and from GAAP efficiency ratio to non-GAAP efficiency
ratio (FTE basis) are presented below:

Interest Income on Non-taxable Investments and Loans are presented
on an FTE basis using the federal statutory rate of 35% for each
period presented.

(9)

Includes Loans Held for Sale and Nonaccrual Loans.

(10)

Includes Deposits Held for Sale.

(11)

The concentration of the Private Banking loan data and credit
quality is primarily based on the location of the lender's
regional offices. Loans in the Pacific Northwest region that were
not included the sale of that region's offices are included with
the offices from which they are being managed after the sale. Net
loans from the Company to certain principals of the Company's
affiliate partners, loans at the Company's non-banking segments,
and inter-company loan eliminations are identified as
“Eliminations and other, net”.

(12)

Accruing substandard loans include loans that are classified as
substandard but are still accruing interest income. Boston Private
Bank & Trust Company may classify a loan as substandard where
known information about possible credit problems of the related
borrowers causes management to have doubts as to the ability of
such borrowers to comply with the present repayment terms and
which may result in disclosure of such loans as nonaccrual at some
time in the future.

(13)

In addition to loans 30-89 days past due and accruing, at March 31,
2014, the Company had three loans totaling $0.6 million that were
more than 90 days past due but still on accrual status. These loans
originated in the New England region. At December 31, 2013, the
Company had two loans totaling $0.1 million that were more than 90
days past due but still on accrual status. These loans originated in
the New England region. At March 31, 2013, the Company had one loan
totaling $0.1 million that was more than 90 days past due but still
on accrual status. These loans originated in the New England region.